"Once advertising becomes totally data-driven, advertisers are going to have to build their own data agencies or partner with data agencies. That’s going to be a multibillion-dollar shake-up.”
This is why we created CompassRed: We believe that the changes to the data world (Big Data, Business Intelligence, and Digital Analytics) over the last 5 years have transformed our world just as profoundly as the way Uber changed the world of the taxi cab industry. The access to data, the tools that allow you to visualize the data, and the awareness and education of the knowledge worker have all contributed to these changes. It is the demand by the consumer for better services and goods, informed by data that is truly having impact.
In a recent article in Wired Magazine, Cambridge Analytica's CEO, Alexander Nix, proclaims that the advertising industry is in a state of flux: instead of instinct, advertising is being driven by digital psychological profiling, allowing advertisers to tailor their messages directly. At the core of this capability is data and those that know how to leverage it. Nix believes there is a shift in the industry that will require agencies to either build out their own analytics skills - or partner with others. We believe that there is value in keeping them separate: allowing the data to inform the creative and branding message instead of being influenced by a hunch in creative.
With every new presidential poll and every new story on "Big Data", there is an awareness that the world can be better informed through data insight. There is a shake up in the "Traditional Digital Agency" that is equivalent to when digital agencies shook up the "Traditional Creative Industry". "Business Intelligence", "Marketing Analytics", and "Multivariate Channel Optimization" are all part of the new vocabulary of the modern day Chief Marketing Officer (CMO). It's the stand alone Data Agency that will be there to shepherd the change.